Thursday, March 3, 2016

Tax evasion: 2015 a record year for adjustments – The Point

A record! 21.2 billion have returned to the state coffers thanks to record tax adjustments. They reported 1.9 billion more than in 2014, announced Thursday the Ministry of Finance.

This increase also applies to amounts actually received by the administration, which increased 17% to 12.2 billion euros, said Bercy, during a movement of Minister Michel Sapin to management of national and international audits, accompanied by the Secretary of State for Budget Christian Eckert. Twelve billion is more than the budgets of Justice, Culture and development aid and as far as the expenses of the Ministry of Interior for the safety of French, depending on the services of Christian Eckert.

According to the Finance Ministry, the number of tax audits in 2015, yet decreased from 51 740 to 50 168 operations. But “it means that controls are better targeted, directed towards the most important shortcomings,” says Bercy. The tax adjustments which increased the most is the corporate income tax, up to a billion. Net taxes on the income tax passed, them, from 2.3 to 2.7 billion euros and those concerning the VAT decreased from 2.3 to 2.2 billion euros.

14 billion euros for VAT fraud

the cost of VAT fraud in France could be around 14 billion euros per year, according Bercy, which refers on this subject to evaluations the European Commission. That tax fraud in general, by some estimates, could reach 60 to 80 billion euros.

In its annual report published in February, the Court of Auditors found that the fight against tax fraud had improved in recent years, but found the results of this disappointing mobilization. “The reforms have not translated to date by higher revenue from controls,” regretted the Court, for which “less than 50%” of the sums due under the control result in recovery two years after taking load.